Money

A new app reduces the financial cost of being courteous.

Words by Eliza Campbell

BEEM IT

Why do we feel awkward asking people to repay small debts? It’s a taboo as old as money itself, and one that comes at great expense to young Australians. The fear of looking like the ‘stingy’ friend means we write off almost $6.2 billion a year in interpersonal debt. According to an online study conducted in May, small IOUs are having a big impact on our finances.

We might be in the red ourselves, but 68 per cent of young Australians are willing to let small debts between friends slide. It’s a familiar situation – you’re out for dinner and the restaurant doesn’t split bills. Whoever breaks the awkward silence ends up fronting the whole cost, with half-hearted promises of bank transfers and people chipping in not-quite-their-share in cash. We buy a round of drinks at the bar, knowing we’ll never see the money for those three $9 G&Ts again. And no one wants to give their housemate a BSB and account number to transfer $4.50 for half the toilet paper.

Australian millennials aren’t just being generous: 25 per cent of us won’t ask for our money back because the debt seems too small; 19 per cent won’t ask because we’re too embarrassed. For a generation used to instantaneous communication and digital gratification, online banking transfers feel painfully antiquated.

In October 2017, the Commonwealth Bank, National Australia Bank and Westpac released Australia’s first digital

peer-to-peer payment application, Beem It.

“The app enables Aussies to get paid instantly, no matter who they bank with,” says Mark Wood, Beem It CEO. “We’re going to do pay, request, and split better than anyone else does in the market.” Wood says that Beem It exploits our social media addiction to reduce our growing debt. “It’s not me sending you $20; it’s me engaging with you on the app,” says Wood.

Beem It pulls money from a sender’s account using the Visa and Mastercard network and puts funds into the recipient’s account via the EFTPOS network. Bank-level security and real-time monitoring protect Beem It users against fraud, and all acounting information is encrypted. “Beem It uses real-time banking technology to ensure money doesn’t get in the way of great life moments,” says Wood. 

Beem It is available to download in the iOS and Android App stores.